If the Quantity of a Good Demanded by a Typical

question 16

Multiple Choice

If the quantity of a good demanded by a typical consumer increases in response to the growth in purchases of other consumers,

• A) a negative network externality is present.
• B) a positive network externality is present.
• C) a network externality is absent.
• D) a network externality can be positive or negative.

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Definitions:

Cognitive Dissonance

The discomfort in one's mind caused by holding multiple opposing beliefs, ideas, or values concurrently.

Social Psychological Theory

A branch of psychological theory that explores how individual behavior is influenced by the social environment and interactions.

Perceived Behavioral Control

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Theory of Planned Behavior

A psychological theory that links beliefs and behavior, suggesting that an individual's intention to engage in a behavior is the principal determinant of whether they will do so, influenced by attitudes, subjective norms, and perceived behavioral control.